I have installed a new instance of HCM9.1 FP2 with PT852.12 after giving credentials in PIA login page it just goes into infinite looping and doesnt open the home page at all...
i am unable to figure out the issue any help is appreciated...

Anything in the webserver/apps logs ? What's your OS ? Are you using fixed IP ?
Did you start the webserver within root user ?
What does a "ping 10.201.26.88" ?
You said you installed path 12, did you load the project in the db ?

Fixed IP address ? What Windows ? Is it a Windows server ? Where is running the db ? The apps ? All in one ? Does your server robust enough ? What are the other processes running onto the same server ?
You may want to read the following note : *E-WL: Troubleshooting WebLogic Issues [ID 649428.1]*+, there's a note on [STUCK] msg.
How long are you waiting to say it's hanging ?